Germany's GDP growth forecast downgraded due to austerity
Kyiv • UNN
The ifo Institute has lowered its GDP growth forecast for Germany for 2024 to 0.7%, explaining it by austerity measures worth almost 19 billion euros in the budget approved by the Bundestag.
Germany's economy may grow by 0.7% in 2024, according to the ifo Institute. In December, it predicted economic growth of 0.9%, but lowered its expectations due to multibillion-dollar austerity measures. This was reported by UNN with reference to Deutsche Welle.
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The German Institute for Economic Research (ifo) has lowered its economic growth forecast for Germany for 2024. It is now expected that Germany's GDP will increase by 0.7% this year. In mid-December, they predicted that the German economy would grow by 0.9% in 2024. It is believed that the reason for the deterioration in the forecast is the austerity measures being developed by the government after the decision of the Federal Constitutional Court.
Timo Wolmershäuser, Head of the Economic Research Department, pointed out that the draft budget for the current year approved by the Bundestag Budget Committee contains additional austerity measures worth almost EUR 19 billion. This will put an additional burden on companies and households and reduce public spending, which will have a negative impact on the market.
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